Economy

As home prices soar in unlikely places, the most vulnerable residents pay the price

New York City transplants are bringing a housing boom — and growing inequality — deep into the Hudson Valley

By Rachel Siegel and Andrew Van Dam
June 9, 2021 at 11:52 a.m. EDT

KINGSTON, N.Y. — Inside a Victorian house flecked with chipping white paint, 65 group home residents must suddenly find a new place to live, an unintended consequence of a Federal Reserve policy meant to save an economy in crisis.

The group home —refuge for people with mental illness, disabilities and substance dependence — is closing after its owners agreed to sell the property this spring. Now, Mary Chisholm, who runs the home, is struggling to relocate the most vulnerable. It’s particularly challenging because the area is unexpectedly experiencing the second-fastest growth in housing prices in the nation.

“Hopefully, I can get everybody out,” Chisholm said. “I can only hope that what I’m trying to put into place for everybody is going to be okay for them.”

Since the coronavirus pandemic began, low mortgage rates and high infection rates have fueled a housing boom that has become one of the most unequal features of the economic recovery. The repercussions are playing out nationwide, as home prices rise in 95 percent of the country, but the pain is sharpest in unexpected pockets such as Kingston, where the boom hit without warning.

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By Rachel Siegel
Rachel Siegel is an economics reporter covering the Federal Reserve. She previously covered breaking news for the Post's financial section and local politics for the Post's Metro desk. Before joining the Post in June 2017, Rachel contributed to The Marshall Project and The Dallas Morning News. Twitter https://twitter.com/rachsieg

By Andrew Van Dam
Andrew Van Dam covers data and economics. He previously worked for the Wall Street Journal, the Boston Globe and the Idaho Press-Tribune. Twitter https://twitter.com/andrewvandam